Published on : Feb 11, 2015
United Airlines, Delta Airlines, and American Airlines, the three big players in the American airline industry who hold the major stake in the nation’s domestic airline traffic have appealed to the White House to limit the entry of Gulf carriers along with staging a protest at the Open Skies bid proposed by Norwegian Air International (NAI). They have already held up the approval for air services based out of Dublin.
President and CEO of the US Travel Association, Roger Dow stated that the review of Open Skies is not just alarming, but disappointing as well. He further added that it will made travel exceptionally cheap for citizens of America and help airlines to achieve great business in the inbound travel market to U.S. However, to ban Open Skies would only hurt fair competition and negatively impact consumer choice, which will eventually affect the demand for travel to U.S. from other regions.
Chairman of the Business Travel Coalition, Kevin Mitchell asserted the same sentiment stating, since U.S. airlines have garnered an antitrust immunity, power consolidations in the industry, and the subsequent increasing airfares with other fees are helping these companies earn record high profits. The demand to ask for a review of Open Skies seems absolutely shameless in the current market scenario as it would reduce the chances of competition in the U.S. market, allowing it to be oligopolistic.
The addition of foreign carriers to U.S. airline market would lower the cost of travel to U.S. for all those who find it an unaffordable destination.